Franchise Companies Come and Go

Each day we hear of companies entering the franchising industry. This is good news for America, right? Well, yes and know. Yes, because franchising is the closest thing to the spirit of free enterprise as any other method of doing business and because franchising offers small business people advantages that they would not normally have in pursuing their American Dream. However it is unfortunate but true that the average Franchisor failure rate is 5:1 in five years. Meaning they are gone out of business in that short amount of time. This is horrific news really. Why is this? Well most often it is due to over regulation, junk lawsuits, under capitalization or greed. Having played in the franchising industry I have seen it all.

Recently I had, had enough of the crap of beating my head against the wall, sure the money is excellent if you have a good concept and we certainly do; www.CarWashGuys.com ; but we found it was easier to make more money and keep more by not growing thru franchising. In franchising you can grow faster, in a 4-year period we went from 4 states to operations and franchised outlets in over 23 states. My point is that there are just too many lawyers and regulations for one to actually believe that anyone in government actually believes in free enterprise, to think they do is a bogus notion indeed.

In our company we are not currently offering franchises to the public. Our focus is to set up company owned units across the US and eventually the world and since I have retired the team will have to do it on their own, sure a few phone calls here and there for moral support or advice, but it just is not worth dealing with that level of bureaucracy and over lititigiousness. We may franchise in other countries but the United States being regulated by the Federal Trade Commission has their heads up their asses and it makes no sense in America anymore. Generally this business decision was made due to many following factors, some of which are listed below:

Sarbaines Oxley Law and Accounting Reporting Cost Increases,

Over Regulation in Franchising and Litigation,

Multiple State Franchise Registration Laws Out of Sync,

Disclosure Laws Hurting Company Proprietary Information,

Required Disclosures which Might Help International Terrorists,

Disclosure Laws, which Require the Giving Out of Personal Information About Franchisees.

Litigiousness of Franchising and Absence of Tort Reforms in the US and Canada,

Higher Profit Margins for the Company Running Our Own Units,

More Efficiency to Corral Our Competition,

More Latitude to Take on New National Account Business,

Better Service Standards for Current and Future Car Wash Customers,

More Control of Business Model and Less Red Tape

We have chosen a new strategy along the lines of a Starbucks, Home Depot, Enterprise Rent-A-Car, Federal Express type scenario where we can exert more control and less red tape to insure higher standards and smoother business operations. Regretfully this does impact the small business community, franchise model and those who dream of owning their own franchise business. Over regulation usually does hurt the little guys and stifle competition and creates barriers to entry.

We are not the only franchisor who feels this way and if the failure rates for franchisors in our country are 5:1 it would behoove new entrants to the franchising industry to think long and hard before getting into the franchise game. If you do not have a million dollars going in, you should not go. If you have not proven your concept in many markets over various business cycles forget it. Additionally you may want to look at alternatives to franchising, because with all this over regulation you are not going to have any fun doing it. Think on this.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Web Based CRM Systems: Get Mobile; Get Results

Everyday more web based companies enter the business scene. The... Read More

Multiple Clients Create Your Independent Business

Would you rather have one good client paying you five... Read More

Why Small Business Must Turn to PR

If small business had no important outside audiences, it wouldn't... Read More

Packing Material Thats Cheap!

Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More

Are You Ready to Own and Operate a Business?

How often has someone thought of starting a business based... Read More

Small Business Owners - They Owe You The Money Why Dont They Pay?

Doesn't it frustrate you when you've given good service, sometimes... Read More

Top Ten Tips for Leveraging Conferences for Big SUCCESS!

As I am preparing for my attendance to the CoachVille's... Read More

How To Select a Franchise

Here are some useful tips on how to select a... Read More

Pressure Washing of Paving Equipment and The EPA

Many pressure washing companies will be glad to take on... Read More

Is Your Business Legally Prepared?

It is imperative to have your business legally prepared. How... Read More

Building A Business That Works For You

Before you want to build your business, you need to... Read More

How Is the LEGAL SYSTEM Dishing Out JUSTICE in Your Town?

Thankfully, most of us will never find out. That is... Read More

How To Write A Business Plan

Writing a business plan is a fundamental step to ensuring... Read More

Essex Accountants: Top Things to Look For

One of the most common horrific mistakes a business can... Read More

(P)Refer to Grow Your Business

(Although this article is geared towards small business owners, the... Read More

How to Avoid the Most Common Reasons for Small Business Failure

The life cycle of the typical small business is short... Read More

Measuring Your Way to Success

Are you a motivational speaker who consistently gets rave reviews... Read More

Self-Employment: Do you know the Difference between Rates and Wages

The difference between rates and wages is not always clear... Read More

Hosted PBX, Is It Right For You?

"Order Now!" "Your Business Will Fail If You Don't Have... Read More

Expanding Franchisee Advice

Franchisor expansion policies are not as simple as one might... Read More

How Micro Loans Can Mean Macro Success for Your Business

"Inch by inch, row by row...that's the way my garden... Read More

Dynamics of Daylight Savings Time on Service Businesses in the United States

The Dynamics of Daylight Savings Time changes the way we... Read More

Making Your Product Desirable For Alliance Partners

How do you make sure you have the business solutions... Read More

Yeah, It IS Lonely At the Top

Sometimes when you run a business you feel as lonely... Read More

Get Free Payroll Forms Download from the Internet

Having a successful business means also having a good working... Read More

Window Cleaning Business Future Challenge With Self Cleaning Glass

Self-cleaning glass has been talked about a lot, with such... Read More

Start a Resume Writing Service for Profit

The resume writing service serves an important role in the... Read More

7 Tips to Improving Your Cash Flow

Cash is King... That is what everyone tells us and... Read More

Small Business Spoiler - Procrastination

One of the most common issues that comes up for... Read More

Arranging Your Fundraiser

When deciding to host a fundraiser for your company or... Read More

How To Get Slightly Famous in Print

Early in my career, I wrote an article for a... Read More

Using Excel Payroll Sheet to Make Payroll System Easier

For the employees, payday is the brightest day; they finally... Read More

Entrepreneurs Go Virtual!

With the massive explosion of start-ups and home businesses developing,... Read More